Autodesk profit down 88% in Q2

Reports increased profitability on a sequential basis, expects around $300m in pre-tax cost savings this fiscal year

Autodesk, a provider of 2D and 3D design and manufacturing software, has reported 88% drop in its profit in the second quarter of fiscal 2010, due to lower sales and restructuring charges.

The company posted a profit of $10.5m or diluted earnings per share of $0.05 during the quarter, compared to a profit of $89.8m or diluted earnings per share of $0.39 in the second quarter of fiscal 2009. Excluding items such as restructuring and stock-compensation costs, earnings fell to $.024 from $0.56.

For the quarter ended July 31, 2009, the company reported revenue of $415m, down 33%, compared to revenue of $619.5m in the same quarter of 2008.

By geography, revenue in the Americas decreased 21% to $159m, EMEA revenue decreased 41% to $157m, while Asia Pacific revenue declined 34% to $99m. Revenue from emerging economies was $63m, a decrease of 45% compared to the same period in fiscal 2009. Emerging economies represented 15% of the total revenue.

Carl Bass, president and CEO of Autodesk, said: Revenue results for the quarter were in-line with our expectations and continue to reflect a challenging global business environment. We are pleased with the progress we’ve made to increase our efficiency and reduce our overall cost structure and as a result, we increased our profitability on a sequential basis.

The company expects net revenue to be in the range of $400m and $420m for the third quarter of fiscal 2010. The company anticipates nearly $300m in pre-tax cost savings this fiscal year compared to FY2009.